I think it is a matter of board philosophy.
All large companies have to balance cash flow vs dividends vs debt vs future needs. Nearly all blue chips have large amount of debt and pay dividends. MTO is not a blue chip but the payment of a dividend shows that the board recognises that some shareholders do want dividends.
I think the main issue for me is that MTO continue to use either cash or debt for acquisitions. Keep the share register tight. Issue no new shares and let increases in earnings flow through to increases in EPS. So far so good, both recent acquisitions were done with cash.
Gosouth
MTO Price at posting:
$4.40 Sentiment: None Disclosure: Held
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